OPPI Claim Example

A hospital owner experienced a large loss due to a structural steel design error. Due to design negligence, part of the new hospital tower was rendered unusable. The result was approximately $20,000,000 in direct damages to the building, and another $5,000,000 in consequential damages. The Owner’s architect had a policy with a $1,000,000 limit. However, most of these policy limits were exhausted in legal costs. Additionally, the structural engineer did not have a professional liability policy. The Owner did not obtain an Owners Protective Indemnity policy.

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